IQ Option is proud to reveal our newest trading instrument — the Classic Options. It is a perfect marriage of unlimited profitability of the stock market and the simplicity of the platform you know and love.
We provide the industry’s leading payouts on binary options trading. However, we felt that this wasn’t enough and our traders deserved better profitability, more control over their risks and a wider portfolio of assets. That’s why after months of research and development we’ve created a trading instrument that checks all of those boxes.
What are Classic Options?
Classic Options are inspired by the American stock options mainly traded in the USA. The options are based on stock prices of 500 top-performing US companies, including such household names as McDonalds, Netflix, Starbucks, Apple and many more. IQ Option sources the best prices from 13 stock exchanges to make sure you get the best deal on every trade.
Classic options work a lot like like binary options: you choose the stock you would like to trade on and pick a direction in which you believe its price is going to go. There’s one major difference between these two instruments, though. With Binary Options your profit per deal is fixed, while with Classical Options it’s virtually limitless, because your profitability increases as long as the price keeps on moving in the selected direction. And the best part? You can close the deal at any point to secure that profit.
How does it work?
First things first: your investment amount is determined by the contract size – the number of options you want to trade. While other stock option brokers don’t allow contracts for less than 100 units, with Classic Options you can purchase a single option if you choose to and for as little as $0.06. The price of each option is based on several factors, such as the best market price for the underlying asset, time left before expiration, volatility and the strike price.
Strike Price — a price level a trader expects for the asset to reach or surpass before the contract expires.
Depending on the asset, you may have as many as 5 strike price options to choose from.
How to trade Classic Options
When the market is close to a strike price, the option price will be higher, but the further the current market direction is from it – the cheaper the contract will be. Simply put: the price of the contract is proportional to your risks. The lower the strike price – the less risky your investment is, but it also means that your profit won’t be growing as rapidly.
It’s important to note that your losses are limited to the size of the investment, while the profitability is truly limitless. As long as the price is moving in your favor, your profit will be growing until the contract expires, and the more it surpasses the strike price, the more profit you’re going to get.
For the next 3 months this revolutionary trading instrument will be available at NO COMMISSION.